Iron City National Bank v. Du Puy

Citations

• 194 Pa. 205
• 44 A. 1066
• 1899 Pa. LEXIS 760

Syllabus

<p>Promissory notes — Fraudulent collateral — Silence—Duty to speak.</p> <p>Where the payee oí a note refuses to renew it because he has learned that the collateral accompanying' it is fraudulent-, and the maker of the note then arranges to borrow the money from a bank upon the same collateral, and the payee, at the maker’s request, sends the note and collateral to the bank by his clerk, who is merely asked by the cashier of the bank the amount due, and is handed a check upon the delivery of the collateral, the transaction does not amount to a sale of the note and collateral by the payee to the bank, and the payee cannot be charged with inducing the bank to myke the loan.</p>